Charity scams: Warning signs and how to stay safe

Estimated reading time
  5 min

Key points

• Scammers often impersonate legitimate charities to trick individuals into donating money to non-existent or misrepresented causes.
  
  
• Look out for unsolicited donation requests, suspicious payment methods, unrealistic donation appeals, aggressive or high-pressure tactics, and suspicious communications outside of official channels, like random emails and text messages, which might signal a scam from a fake charity.
  
  
• Be sure to verify the charity’s registration with the Australian Charities and Not-for-profits Commission (ACNC) and double-check the charity’s authenticity before donating.

Donating to charity can be a positive way to support causes you care about, such as medical research, disaster relief or community programs. Many Australians choose to give to charities they believe are doing good work. 

Unfortunately, charity scams do occur in Australia. These scams may involve people or groups pretending to be charities, or claiming a connection to real organisations, to ask for donations dishonestly. Contact may happen by phone, email, text message or social media, and often includes emotional or urgent requests.

Understanding some common warning signs may help you make more informed decisions when donating and reduce the risk of losing money, while supporting genuine charities.

What is a charity scam?

A charity scam is when scammers pretend to be a real charity, or create a fake one, to trick people into donating money. They may use fake websites, social media posts, emails or phone calls to ask for donations to causes that don’t exist or aren’t as described.

In Australia, these scams can appear during natural disasters, global emergencies or major news events. Scammers often use emotional messages to pressure people into donating quickly, without any real intention of helping those in need.

How do charity scams work?

Charity scams use different methods to trick people into donating money to fake causes. Common tactics include:

• Fake websites or social media pages: Scammers create websites or profiles that look like real charities, using stolen images, fake stories or misleading details to appear legitimate.
  
  
• Emails and text messages pretending to be charities: Messages may look like they are from well known charity organisations and often include links to fake donation pages designed to steal money or personal information.
  
  
• In person or phone donation requests: Scammers may call, knock on doors or approach people in public, using emotional stories or pressure tactics to encourage immediate donations.
  
  
• Fake fundraising campaigns: Scammers may set up fake fundraisers on crowdfunding platforms, often using emotional stories or stolen images to persuade people to donate.

Warning signs of a fraudulent charity

Be cautious if you notice any of the following:

• Unsolicited donation requests
  Requests for donations that come without prior contact, including calls, messages or emails, should be treated with caution.
  
  
• Unusual payment methods
  Requests to donate via bank transfer, gift cards or cryptocurrency should raise concern.
  
  
• Pressure to donate immediately
  Scammers often create urgency, such as claiming a crisis or limited time matching donations. They may also use guilt to push you into donating before you’ve had time to check.
  
  
• Lack of transparency
  If it’s hard to find clear information about the charity’s purpose, finances or how donations are used, proceed with caution.

Tips to help you stay safe

 STOP

• Pause before donating, especially during disasters or urgent appeals.
• Be cautious of unsolicited requests by phone, email, text or social media.

 CHECK

• Search the Australian Charities and Not-for-Profits Commission (ACNC) Charity Register to confirm the charity is registered in Australia.
• Avoid clicking links in unsolicited emails or social media posts. Instead, visit the charity or crowdfunding site directly and search for the campaign yourself.
• Look for transparency about how donations are used. Genuine charities usually provide clear information about their work and finances.
• Always ask for identification and proof of authority from anyone seeking a donation.

 PROTECT

• Use secure payment methods, such as credit cards or trusted online payment systems that offer transaction protections.
• Avoid bank transfers or cash, as these can be difficult to trace or recover.
• Never provide sensitive details like your credit card or bank account information unless you are confident the charity is legitimate.

What to do if you think you’ve been scammed

• If you’ve donated using a credit card or bank transfer, contact your financial institution immediately. If you’re an ANZ business customer, contact us immediately to report the fraud.
  
  
• If you shared business credit card details, ‘block’ or cancel those cards immediately. If your cards are with ANZ, you can report the stolen card through the ANZ app or by calling us.
  
  
• Alert the relevant authorities, including the Australian Competition and Consumer Commission (ACCC) and Australian Charities and Not-for-profits Commission (ACNC), so they can investigate and warn others.
  
  
• Keep an eye on your bank and credit card statements for any suspicious activity, and report anything unusual to your bank.
  
  
• Keep any communications, receipts, or confirmation emails related to the donation. These could be helpful if authorities need to investigate the scam.

Who can you contact if you’ve been scammed?

• Report the scam to the Australian Signals Directorate’s ReportCyber portal. This resource is there for reports of scams where money or personal information has been lost.
  
  
• Help others by reporting to Scamwatch to help them prevent future losses, monitor trends and educate the population about emerging threats.
  
  
• For phishing or identity theft associated with government accounts such as Centrelink, Medicare, or Child Support, contact the Services Australia scams and identity helpdesk on 1800 941 126 or visit their website.
  
  
• You can also contact IDCare, a not-for-profit organisation providing support to those experiencing identity and cyber security concerns.
  
  
• Contact your bank immediately if you have shared personal or financial information.
  
  
• If you’re an ANZ customer, you can report fraud or suspicious activity in multiple ways, such as through the ANZ app or by calling us.